Current Version - 4th Engrossment

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3031.3131.3231.3331.3431.3531.3632.132.232.332.432.532.632.732.832.932.1032.1132.1232.1332.1432.1532.1632.1732.1832.1932.2032.2132.2232.2332.2432.2532.2632.2732.2832.2932.3032.3132.3232.3332.3432.3532.3633.133.233.333.433.533.633.733.833.933.1033.1133.1233.1333.1433.1533.1633.1733.1833.1933.2033.2133.2233.2333.2433.2533.2633.2733.2833.2933.3033.3133.3233.3333.3433.3533.3634.134.234.334.434.534.634.734.834.934.1034.1134.1234.1334.1434.1534.1634.1734.1834.1934.2034.2134.2234.2334.2434.2534.2634.2734.2834.2934.3034.3134.3234.3334.3434.3534.3635.135.235.335.435.535.635.735.835.935.1035.1135.1235.1335.1435.1535.1635.1735.1835.1935.2035.2135.2235.2335.2435.2535.2635.2735.2835.2935.3035.3135.3235.3335.3435.3535.3636.136.236.336.436.536.636.736.836.936.1036.1136.1236.1336.1436.1536.1636.1736.1836.1936.2036.2136.2236.2336.2436.2536.2636.2736.2836.2936.3036.3136.3236.3336.3436.3536.3637.137.237.337.437.537.637.737.837.937.1037.1137.1237.1337.1437.1537.1637.1737.1837.1937.2037.2137.2237.2337.2437.2537.2637.2737.2837.2937.3037.3137.3237.3337.3437.3537.3638.138.238.338.438.538.638.738.838.938.1038.1138.1238.1338.1438.1538.1638.1738.1838.1938.2038.2138.2238.2338.2438.2538.2638.2738.2838.2938.3038.3138.3238.3338.3438.3538.3639.139.239.339.439.539.639.739.839.939.1039.1139.1239.1339.1439.1539.1639.1739.1839.1939.2039.2139.2239.2339.2439.2539.2639.2739.2839.2939.3039.3139.3239.3339.3439.3539.3640.140.240.340.440.540.640.740.840.940.1040.1140.1240.1340.1440.1540.1640.1740.1840.1940.2040.2140.2240.2340.2440.2540.2640.2740.2840.2940.3040.3140.3240.3340.3440.3540.3641.141.241.341.441.541.641.741.841.941.1041.1141.1241.1341.1441.1541.1641.1741.1841.1941.2041.2141.2241.2341.2441.2541.2641.2741.2841.2941.3041.3141.3241.3341.3441.3541.3642.142.242.342.442.542.642.742.842.942.1042.1142.1242.1342.1442.1542.1642.1742.1842.1942.2042.2142.2242.2342.2442.2542.2642.2742.2842.2942.3042.3142.3242.3342.3442.3542.3643.143.243.343.443.543.643.743.843.943.1043.1143.1243.1343.1443.1543.1643.1743.1843.1943.2043.2143.2243.2343.2443.2543.2643.2743.2843.2943.3043.3143.3243.3343.3443.3543.3644.144.244.344.444.544.644.744.844.944.1044.1144.1244.1344.1444.1544.1644.1744.1844.1944.2044.2144.2244.2344.2444.2544.2644.2744.2844.2944.3044.3144.3244.3344.3444.3544.3645.145.245.345.445.545.645.745.845.945.1045.1145.1245.1345.1445.1545.1645.1745.1845.1945.2045.2145.2245.2345.2445.2545.2645.2745.2845.2945.3045.3145.3245.3345.3445.3545.3646.146.246.346.446.546.646.746.846.946.1046.1146.1246.1346.1446.1546.1646.1746.1846.1946.2046.2146.2246.2346.2446.2546.2646.2746.2846.2946.3046.3146.3246.3346.3446.3546.3647.147.247.347.447.547.647.747.847.947.1047.1147.1247.1347.1447.1547.1647.1747.1847.1947.2047.2147.2247.2347.2447.2547.2647.2747.2847.2947.3047.3147.3247.3347.3447.3547.3648.148.248.348.448.548.648.748.848.948.1048.1148.1248.1348.1448.1548.1648.1748.1848.1948.2048.2148.2248.2348.2448.2548.2648.2748.2848.2948.3048.3148.3248.3348.3448.3548.3649.149.249.349.449.549.649.749.849.949.1049.1149.1249.1349.1449.1549.1649.1749.1849.1949.2049.2149.2249.2349.2449.2549.2649.2749.2849.2949.3049.3149.3249.3349.3449.3549.3650.150.250.350.450.550.650.750.850.950.1050.1150.1250.1350.1450.1550.1650.1750.1850.1950.2050.2150.2250.2350.2450.2550.2650.2750.2850.2950.3050.3150.3250.3350.3450.3550.3651.151.251.351.451.551.651.751.851.951.1051.1151.1251.1351.1451.1551.1651.1751.1851.1951.2051.2151.2251.2351.2451.2551.2651.2751.2851.2951.3051.3151.3251.3351.3451.3551.3652.152.252.352.452.552.652.752.852.952.1052.1152.1252.1352.1452.1552.1652.1752.1852.1952.2052.2152.2252.2352.2452.2552.2652.2752.2852.2952.3052.3152.3252.3352.3452.3552.3653.153.253.353.453.553.653.753.853.953.1053.1153.1253.1353.1453.1553.1653.1753.1853.1953.2053.2153.2253.2353.2453.2553.2653.2753.2853.2953.3053.3153.3253.3353.3453.3553.3654.154.254.354.454.554.654.754.854.954.1054.1154.1254.1354.1454.1554.1654.1754.1854.1954.2054.2154.2254.2354.2454.2554.2654.2754.2854.2954.3054.3154.3254.3354.3454.3554.3655.155.255.355.455.555.655.755.855.955.1055.1155.1255.1355.1455.1555.1655.1755.1855.1955.2055.2155.2255.2355.2455.2555.2655.2755.2855.2955.3055.3155.3255.3355.3455.3555.3656.156.256.356.456.556.656.756.856.956.1056.1156.1256.1356.1456.1556.1656.1756.1856.1956.2056.2156.2256.2356.2456.2556.2656.2756.2856.2956.3056.3156.3256.3356.3456.3556.3657.157.257.357.457.557.657.757.857.957.1057.1157.1257.1357.1457.1557.1657.1757.1857.1957.2057.2157.2257.2357.2457.2557.2657.2757.2857.2957.3057.3157.3257.3357.3457.3557.3658.158.258.358.458.558.658.758.858.958.1058.1158.1258.1358.1458.1558.1658.1758.1858.1958.2058.2158.2258.2358.2458.2558.2658.2758.2858.2958.3058.3158.3258.3358.3458.3558.3659.159.259.359.459.559.659.759.859.959.1059.1159.1259.1359.1459.1559.1659.1759.1859.1959.2059.2159.2259.2359.2459.2559.2659.2759.2859.2959.3059.3159.3259.3359.3459.3559.3660.160.260.360.460.560.660.760.860.960.1060.1160.1260.1360.1460.1560.1660.1760.1860.1960.2060.2160.2260.2360.2460.2560.2660.2760.2860.2960.3060.3160.3260.3360.3460.3560.3661.161.261.361.461.561.661.761.861.961.1061.1161.1261.1361.1461.1561.1661.1761.1861.1961.2061.2161.2261.2361.2461.2561.2661.2761.2861.2961.3061.3161.3261.3361.3461.3561.3662.162.262.362.462.562.662.762.862.962.1062.1162.1262.1362.1462.1562.1662.1762.1862.1962.2062.2162.2262.2362.2462.2562.2662.2762.2862.2962.3062.3162.3262.3362.3462.3562.3663.163.263.363.463.563.663.763.863.963.1063.1163.1263.1363.1463.1563.1663.1763.1863.1963.2063.2163.2263.2363.2463.2563.2663.2763.2863.2963.3063.3163.3263.3363.3463.3563.3664.164.264.364.464.564.664.764.864.964.1064.1164.1264.1364.1464.1564.1664.1764.1864.1964.2064.2164.2264.2364.2464.2564.2664.2764.2864.2964.3064.3164.3264.3364.3464.3564.3664.3764.3864.3964.4064.4164.4264.4364.4464.4564.4664.4765.165.265.365.465.565.665.765.865.965.1065.1165.1265.1365.1465.1565.1665.1765.1865.1965.2065.2165.2265.2365.2465.2565.2665.2765.2865.2965.3065.3165.3265.3365.3465.3565.3666.166.266.366.466.566.666.766.866.966.1066.1166.1266.1366.1466.1566.1666.1766.1866.1966.2066.2166.2266.2366.2466.2566.2666.2766.2866.2966.3066.3166.3266.33

ARTICLE 1

PUBLIC FINANCE

Section 1.

new text beginSubd. 4.new text end

new text beginCity of st. paul data.new text end

new text begin(a) For purposes of thissubdivision, "nonprofit organization" means the nonprofitorganization with which the city of St. Paul contracts to marketand promote the city as a tourist or convention center.new text end

new text begin(b) Data collected, received, created, or maintained by thenonprofit organization in the course of preparing or submittingany responses to requests for proposals or requests for bidsrelating to events hosted, conducted, or sponsored by thenonprofit organization is classified as nonpublic data undersection 13.02, subdivision 9; or private data under section13.02, subdivision 12, until the time provided in subdivision 2,paragraph (a) or (b), of this section. The nonprofitorganization is a "civic center authority" for purposes of thissection.new text end

Sec. 2.

Subd. 5.

Guaranteed investment contracts.

Agreements orcontracts for guaranteed investment contracts may be enteredinto if they are issued or guaranteed by United Statescommercial banks, domestic branches of foreign banks, UnitedStates insurance companies, or their Canadian subsidiariesnew text begin, orthe domestic affiliates of any of the foregoingnew text end. The creditquality of the issuer's or guarantor's short- and long-termunsecured debt must be rated in one of the two highestcategories by a nationally recognized rating agency. Should theissuer's or guarantor's credit quality be downgraded below "A",the government entity must have withdrawal rights.

Sec. 3.

Subd. 5.

Special levies.

"Special levies" means thoseportions of ad valorem taxes levied by a local governmental unitfor the following purposes or in the following manner:

(1) to pay the costs of the principal and interest onbonded indebtedness or to reimburse for the amount of liquorstore revenues used to pay the principal and interest due onmunicipal liquor store bonds in the year preceding the year forwhich the levy limit is calculated;

(2) to pay the costs of principal and interest oncertificates of indebtedness issued for any corporate purposeexcept for the following:

(i) tax anticipation or aid anticipation certificates ofindebtedness;

(ii) certificates of indebtedness issued under sections298.28 and 298.282;

(iii) certificates of indebtedness used to fund currentexpenses or to pay the costs of extraordinary expenditures thatresult from a public emergency; or

(iv) certificates of indebtedness used to fund aninsufficiency in tax receipts or an insufficiency in otherrevenue sources;

(3) to provide for the bonded indebtedness portion ofpayments made to another political subdivision of the state ofMinnesota;

(4) to fund payments made to the Minnesota State ArmoryBuilding Commission under section 193.145, subdivision 2, toretire the principal and interest on armory construction bonds;

(5) property taxes approved by voters which are leviedagainst the referendum market value as provided under section275.61;

(6) to fund matching requirements needed to qualify forfederal or state grants or programs to the extent that either(i) the matching requirement exceeds the matching requirement incalendar year 2001, or (ii) it is a new matching requirementthat did not exist prior to 2002;

(7) to pay the expenses reasonably and necessarily incurredin preparing for or repairing the effects of natural disasterincluding the occurrence or threat of widespread or severedamage, injury, or loss of life or property resulting fromnatural causes, in accordance with standards formulated by theEmergency Services Division of the state Department of PublicSafety, as allowed by the commissioner of revenue under section275.74, subdivision 2;

(8) pay amounts required to correct an error in the levycertified to the county auditor by a city or county in a levyyear, but only to the extent that when added to the precedingyear's levy it is not in excess of an applicable statutory,special law or charter limitation, or the limitation imposed onthe governmental subdivision by sections 275.70 to 275.74 in thepreceding levy year;

(10) to pay any costs attributable to increases in theemployer contribution rates under chapter 353 that are effectiveafter June 30, 2001;

(11) to pay the operating or maintenance costs of a countyjail as authorized in section 641.01 or 641.262, or of acorrectional facility as defined in section 241.021, subdivision1, paragraph (f), to the extent that the county can demonstrateto the commissioner of revenue that the amount has been includedin the county budget as a direct result of a rule, minimumrequirement, minimum standard, or directive of the Department ofCorrections, or to pay the operating or maintenance costs of aregional jail as authorized in section 641.262. For purposes ofthis clause, a district court order is not a rule, minimumrequirement, minimum standard, or directive of the Department ofCorrections. If the county utilizes this special levy, exceptto pay operating or maintenance costs of a new regional jailfacility under sections 641.262 to 641.264 which will notreplace an existing jail facility, any amount levied by thecounty in the previous levy year for the purposes specifiedunder this clause and included in the county's previous year'slevy limitation computed under section 275.71, shall be deductedfrom the levy limit base under section 275.71, subdivision 2,when determining the county's current year levy limitation. Thecounty shall provide the necessary information to thecommissioner of revenue for making this determination;

(12) to pay for operation of a lake improvement district,as authorized under section 103B.555. If the county utilizesthis special levy, any amount levied by the county in theprevious levy year for the purposes specified under this clauseand included in the county's previous year's levy limitationcomputed under section 275.71 shall be deducted from the levylimit base under section 275.71, subdivision 2, when determiningthe county's current year levy limitation. The county shallprovide the necessary information to the commissioner of revenuefor making this determination;

(13) to repay a state or federal loan used to fund thedirect or indirect required spending by the local government dueto a state or federal transportation project or other state orfederal capital project. This authority may only be used if theproject is not a local government initiative;

(14) to pay for court administration costs as requiredunder section 273.1398, subdivision 4b, less the (i) county'sshare of transferred fines and fees collected by the districtcourts in the county for calendar year 2001 and (ii) the aidamount certified to be paid to the county in 2004 under section273.1398, subdivision 4c; however, for taxes levied to pay forthese costs in the year in which the court financing istransferred to the state, the amount under this clause islimited to the amount of aid the county is certified to receiveunder section 273.1398, subdivision 4a; deleted text beginand deleted text end

(15) to fund a police or firefighters relief association asrequired under section 69.77 to the extent that the requiredamount exceeds the amount levied for this purpose in 2001new text begin; and new text end

new text begin(16) for purposes of a storm sewer improvement district,pursuant to section 444.20new text end.

Sec. 4.

Subdivision 1.

Creation; purposes.

A fund called thetaconite environmental protection fund is created for thepurpose of reclaiming, restoring and enhancing those areas ofnortheast Minnesota located within the taconite assistance areadefined in section 273.1341, that are adversely affected by theenvironmentally damaging operations involved in mining taconiteand iron ore and producing iron ore concentrate and for thepurpose of promoting the economic development of northeastMinnesota. The taconite environmental protection fund shall beused for the following purposes:

(a) to initiate investigations into matters the Iron RangeResources and Rehabilitation Board determines are in need ofstudy and which will determine the environmental problemsrequiring remedial action;

(b) reclamation, restoration, or reforestation of minelandsnot otherwise provided for by state law;

(c) local economic development projects deleted text beginincludingconstruction of sewer and water systems, and other deleted text endnew text beginbut only ifthose projects are approved by the board, and new text endpublic worksnew text begin,including construction of sewer and water systems new text endlocated withinthe taconite assistance area defined in section 273.1341;

new text beginEFFECTIVE DATE.new text end

Sec. 5.

343.11 ACQUISITION OF PROPERTY, APPROPRIATIONS.

Every county and district society for the prevention ofcruelty to animals may acquire, by purchase, gift, grant, ordevise, and hold, use, or convey, real estate and personalproperty, and lease, mortgage, sell, or use the same in anymanner conducive to its interest, to the same extent as naturalpersons. The county board of any county, or the council of anycity, in which such societies exist, may, in its discretion,appropriate for the maintenance and support of such societies inthe transaction of the work for which they are organized, anysums of money not otherwise appropriated, not to exceed in anyone year the sum of $4,800 or the sum of deleted text begin50 cents deleted text endnew text begin$1 new text endper capitabased upon the county's or city's population as of the mostrecent federal census, whichever is greater; provided, that nopart of the appropriation shall be expended for the payment ofthe salary of any officer of the society.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective January 1, 2006.new text end

Sec. 6.

Subd. 3.

Capital notes.

new text begin(a) new text endA county board may, byresolution and without referendum, issue capital notes subjectto the county debt limit to purchase capital equipment usefulfor county purposes that has an expected useful life at leastequal to the term of the notes. The notes shall be payable innot more than deleted text beginfive deleted text endnew text beginten new text endyears and shall be issued on terms and ina manner the board determines. A tax levy shall be made forpayment of the principal and interest on the notes, inaccordance with section 475.61, as in the case of bonds.

new text begin(b) new text endFor purposes of this subdivision, "capital equipment"meansnew text begin:new text end

Sec. 7.

Subdivision 1.

Definitions.

For purposes of thissection, the following terms have the meanings given.

(a) "Bonds" means an obligation as defined under section475.51.

(b) "Capital improvement" means acquisition or bettermentof public lands, deleted text begindevelopment rights in the form of conservationeasements under chapter 84C,deleted text endbuildings, or other improvementswithin the county for the purpose of a county courthouse,administrative building, health or social service facility,correctional facility, jail, law enforcement center, hospital,morgue, library, park, qualified indoor ice arena, deleted text beginand deleted text endroads andbridgesnew text begin, and the acquisition of development rights in the formof conservation easements under chapter 84Cnew text end. An improvementmust have an expected useful life of five years or more toqualify. "Capital improvement" does not include light railtransit or any activity related to it or a recreation or sportsfacility building (such as, but not limited to, a gymnasium, icearena, racquet sports facility, swimming pool, exercise room orhealth spa), unless the building is part of an outdoor parkfacility and is incidental to the primary purpose of outdoorrecreation.

Sec. 8.

410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITALEQUIPMENT.

new text begin(a) new text endNotwithstanding any contrary provision of other law orcharter, a home rule charter city may, by resolution and withoutpublic referendum, issue capital notes subject to the city debtlimit to purchase new text begincapital equipment.new text end

new text begin(b) For purposes of this section, "capital equipment" means:new text end

new text begin(c) new text endThe equipment or software deleted text beginhas deleted text endnew text beginmust have new text endan expecteduseful life at least as long as the term of the notes. Theauthority to issue capital notes for deleted text beginoriginal operating system deleted text endsoftware expires on July 1, deleted text begin2005 deleted text endnew text begin2007new text end.

new text begin(d) new text endThe notes shall be payable in not more than deleted text beginfive deleted text endnew text beginten new text endyears and be issued on terms and in the manner the citydetermines. The total principal amount of the capital notesissued in a fiscal year shall not exceed 0.03 percent of themarket value of taxable property in the city for that year.

new text begin(e) new text endA tax levy shall be made for the payment of theprincipal and interest on the notes, in accordance with section475.61, as in the case of bonds.

new text begin(f) new text endNotes issued under this section shall require anaffirmative vote of two-thirds of the governing body of the city.

new text begin(g) new text endNotwithstanding a contrary provision of other law orcharter, a home rule charter city may also issue capital notessubject to its debt limit in the manner and subject to thelimitations applicable to statutory cities pursuant to section412.301.

new text begin(c) new text endThe equipment or software deleted text beginhas deleted text endnew text beginmust have new text endan expecteduseful life at least as long as the terms of the certificates ornotes. The authority to issue capital notes for deleted text beginoriginaloperating system deleted text endsoftware expires on July 1, deleted text begin2005 deleted text endnew text begin2007new text end.

new text begin(d) new text endSuch certificates or notes shall be payable in not morethan deleted text beginfive deleted text endnew text beginten new text endyears and shall be issued on such terms and insuch manner as the council may determine.

new text begin(e) new text endIf the amount of the certificates or notes to be issuedto finance any such purchase exceeds 0.25 percent of the marketvalue of taxable property in the city, they shall not be issuedfor at least ten days after publication in the officialnewspaper of a council resolution determining to issue them; andif before the end of that time, a petition asking for anelection on the proposition signed by voters equal to tenpercent of the number of voters at the last regular municipalelection is filed with the clerk, such certificates or notesshall not be issued until the proposition of their issuance hasbeen approved by a majority of the votes cast on the question ata regular or special election.

new text begin(f) new text endA tax levy shall be made for the payment of theprincipal and interest on such certificates or notes, inaccordance with section 475.61, as in the case of bonds.

Sec. 10.

428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDERGENERAL LAW.

The establishment of a new special service district afterJune 30, deleted text begin2005 deleted text endnew text begin2009new text end, requires enactment of a special lawauthorizing the establishment.

Sec. 12.

new text beginA municipality may construct street or road improvementsoutside its jurisdiction with the consent of the affectedtownship, or if the property is located in unorganizedterritory, the county. When property is brought within thecorporate limits of the municipality, the municipality maysubsequently reimburse itself for all or any portion of the costof the improvement for which municipal funds have been expended,by levying an assessment upon any property abutting on, but notpreviously assessed for, the improvement. No assessment may beso levied unless the property to be assessed was given noticeand hearing of the improvements under section 429.031 at thetime the improvement was ordered, and subsequently in accordancewith the notice, hearing, and appeal rights, provided for undersections 429.061 and 429.081.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for street androad improvements first ordered after August 1, 2005.new text end

Sec. 13.

new text begin[452.26] UTILITY JOINT VENTURE.new text end

new text beginTo provide reduced cost financing or to otherwise help incarrying out its functions, a municipal gas agency created underchapter 453A and any municipal utility authorized to provide gasfacilities or services may enter into a joint venture that wasincorporated before June 30, 2004, under section 452.25. Thejoint venture, and any municipal gas agency which is a member ofthe joint venture, may provide gas utility service.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the dayfollowing final enactment.new text end

Sec. 14.

Subd. 4.

Exceptions.

(a) An authority need not requirecompetitive bidding in the following circumstances:

(1) in the case of a contract for the acquisition of alow-rent housing project:

(i) for which financial assistance is provided by thefederal government;

(ii) which does not require any direct loan or grant ofmoney from the municipality as a condition of the federalfinancial assistance; and

(iii) for which the contract provides for the constructionof the project upon land that is either owned by the authorityfor redevelopment purposes or not owned by the authority at thetime of the contract but the contract provides for theconveyance or lease to the authority of the project orimprovements upon completion of construction;

(2) with respect to a structured parking facility:

(i) constructed in conjunction with, and directly above orbelow, a development; and

(ii) financed with the proceeds of tax increment or parkingramp general obligation or revenue bonds; deleted text beginand deleted text end

(3) new text beginuntil August 1, 2009, with respect to a facility builtfor the purpose of facilitating the operation of public transitor encouraging its use:new text end

new text begin(i) constructed in conjunction with, and directly above orbelow, a development; and new text end

new text begin(ii) financed with the proceeds of parking ramp generalobligation or revenue bonds or with at least 60 percent of theconstruction cost being financed with funding provided by thefederal government; and new text end

new text begin(4) new text endin the case of any building in which at least 75percent of the usable square footage constitutes a housingdevelopment project if:

(i) the project is financed with the proceeds of bondsissued under section 469.034 or from nongovernmental sources;

(ii) the project is either located on land that is owned oris being acquired by the authority only for developmentpurposes, or is not owned by the authority at the time thecontract is entered into but the contract provides forconveyance or lease to the authority of the project orimprovements upon completion of construction; and

(iii) the authority finds and determines that eliminationof the public bidding requirements is necessary in order for thehousing development project to be economical and feasible.

(b) An authority need not require a performance bond forthe following projects:

(1) a contract described in paragraph (a), clause (1);

(2) a construction change order for a housing project inwhich 30 percent of the construction has been completed;

(3) a construction contract for a single-family housingproject in which the authority acts as the general constructioncontractor; or

(4) a services or materials contract for a housing project.

For purposes of this paragraph, "services or materialscontract" does not include construction contracts.

Sec. 15.

Subd. 2.

General obligation revenue bonds.

(a) Anauthority may pledge the general obligation of the generaljurisdiction governmental unit as additional security for bondspayable from income or revenues of the project or theauthority. The authority must find that the pledged revenueswill equal or exceed 110 percent of the principal and interestdue on the bonds for each year. The proceeds of the bonds mustbe used for a qualified housing development project orprojects. The obligations must be issued and sold in the mannerand following the procedures provided by chapter 475, except theobligations are not subject to approval by the electorsnew text begin,new text endand thematurities may extend to not more than deleted text begin30 deleted text endnew text begin35 new text endyears deleted text beginfrom theestimated date of completion of the project deleted text endnew text beginfor obligations soldto finance housing for the elderly and 40 years for otherobligations issued under this subdivisionnew text end. The authority is themunicipality for purposes of chapter 475.

(b) The principal amount of the issue must be approved bythe governing body of the general jurisdiction governmental unitwhose general obligation is pledged. Public hearings must beheld on issuance of the obligations by both the authority andthe general jurisdiction governmental unit. The hearings mustbe held at least 15 days, but not more than 120 days, before thesale of the obligations.

(c) The maximum amount of general obligation bonds that maybe issued and outstanding under this section equals the greaterof (1) one-half of one percent of the taxable market value ofthe general jurisdiction governmental unit whose generalobligation deleted text beginwhich includes a tax on property deleted text endis pledged, or (2)$3,000,000. In the case of county or multicounty generalobligation bonds, the outstanding general obligation bonds ofall cities in the county or counties issued under thissubdivision must be added in calculating the limit under clause(1).

(d) "General jurisdiction governmental unit" means the cityin which the housing development project is located. In thecase of a county or multicounty authority, the county orcounties may act as the general jurisdiction governmental unit.In the case of a multicounty authority, the pledge of thegeneral obligation is a pledge of a tax on the taxable propertyin each of the counties.

(e) "Qualified housing development project" means a housingdevelopment project providing housing either for the elderly orfor individuals and families with incomes not greater than 80percent of the median family income as estimated by the UnitedStates Department of Housing and Urban Development for thestandard metropolitan statistical area or the nonmetropolitancounty in which the project is locateddeleted text begin, and will deleted text endnew text begin. The projectmust new text endbe owned new text beginfor the term of the bonds either new text endby theauthority deleted text beginfor the term of the bonds.deleted text endnew text beginor by a limited partnershipor other entity in which the authority or another entity underthe sole control of the authority is the sole general partnerand the partnership or other entity must receive (1) anallocation from the Department of Finance or an entitlementissuer of tax-exempt bonding authority for the project and apreliminary determination by the Minnesota Housing FinanceAgency or the applicable suballocator of tax credits that theproject will qualify for four percent low-income housing taxcredits or (2) a reservation of nine percent low-income housingtax credits from the Minnesota Housing Finance Agency or asuballocator of tax credits for the project.new text endA qualifiedhousing development project may admit nonelderly individuals andfamilies with higher incomes if:

(1) three years have passed since initial occupancy;

(2) the authority finds the project is experiencingunanticipated vacancies resulting in insufficient revenues,because of changes in population or other unforeseencircumstances that occurred after the initial finding ofadequate revenues; and

(3) the authority finds a tax levy or payment from generalassets of the general jurisdiction governmental unit will benecessary to pay debt service on the bonds if higher incomeindividuals or families are not admitted.

Sec. 16.

469.158 MANNER OF ISSUANCE OF BONDS; INTEREST RATE.

Bonds authorized under sections 469.152 to 469.165 must beissued in accordance with the provisions of chapter 475 relatingto bonds payable from income of revenue producing conveniences,except that public sale is not required, the provisions ofsections 475.62 and 475.63 do not apply, and the bonds maymature at the time or times, in the amount or amounts, within deleted text begin30 deleted text endnew text begin40 new text endyears from date of issue, and may be sold at a price equal tothe percentage of the par value thereof, plus accrued interest,and bearing interest at the rate or rates agreed by thecontracting party, the purchaser, and the municipality orredevelopment agency, notwithstanding any limitation of interestrate or cost or of the amounts of annual maturities contained inany other law. Bonds issued to refund bonds previously issuedpursuant to sections 469.152 to 469.165 may be issued in amountsdetermined by the municipality or redevelopment agencynotwithstanding the provisions of section 475.67, subdivision 3.

Sec. 17.

Subd. 6.

Duration limit.

(a) A political subdivision maygrant an abatement for a period no longer than deleted text beginten deleted text endnew text begin15 new text endyears,except as provided under paragraph (b). The subdivision mayspecify in the abatement resolution a shorter duration. If theresolution does not specify a period of time, the abatement isfor eight years. If an abatement has been granted to a parcelof property and the period of the abatement has expired, thepolitical subdivision that granted the abatement may not grantanother abatement for eight years after the expiration of thefirst abatement. This prohibition does not apply toimprovements added after and not subject to the first abatement.

(b) A political subdivision proposing to abate taxes for aparcel may request, in writing, that the other politicalsubdivisions in which the parcel is located grant an abatementfor the property. If one of the other political subdivisionsdeclines, in writing, to grant an abatement or if 90 days passafter receipt of the request to grant an abatement without awritten response from one of the political subdivisions, theduration limit for an abatement for the parcel by the requestingpolitical subdivision and any other participating politicalsubdivision is increased to deleted text begin15 deleted text endnew text begin20 new text endyears. If the politicalsubdivision which declined to grant an abatement later grants anabatement for the parcel, the deleted text begin15-year deleted text endnew text begin20-year new text endduration limit isreduced by one year for each year that the declining politicalsubdivision grants an abatement for the parcel during the periodof the abatement granted by the requesting politicalsubdivision. The duration limit may not be reduced below thelimit under paragraph (a).

Sec. 18.

Subd. 4.

Debt reserve; levy.

To provide money to paydebt service on bonds issued under the credit enhancementprogram deleted text beginif pledged revenues are insufficient to pay debt service deleted text endnew text beginin repealed subdivision 1 of Minnesota Statutes 2004, section473.197new text end, the council must maintain a debt reserve fund deleted text beginin themanner and with the effect provided by section 118A.04 forpublic funds deleted text endnew text beginuntil such a reserve is no longer pledged orotherwise needed to pay debt service on such bondsnew text end. deleted text beginTo providefunds for the debt reserve fund, the council may use up to$3,000,000 of the proceeds of solid waste bonds issued by thecouncil under section 473.831 before its repeal. To provideadditional funds for the debt reserve fund, the council may levya tax on all taxable property in the metropolitan area and mustlevy the tax deleted text endIf sums in the debt reserve fund are insufficientto cure any deficiency in the debt service fund established forthe bondsnew text begin, the council must levy a tax on all taxable propertyin the metropolitan area in the amount needed to cure thedeficiencynew text end. The tax authorized by this section does not affectthe amount or rate of taxes that may be levied by the councilfor other purposes and is not subject to limit as to rate oramount.

Sec. 19.

new text beginSubd. 1k.new text end

new text beginObligations.new text end

new text beginAfter July 1, 2005, in additionto the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 1g, 1h, 1i,and 1j, the council may issue certificates of indebtedness,bonds, or other obligations under this section in an amount notexceeding $64,000,000 for capital expenditures as prescribed inthe council's regional transit master plan and transit capitalimprovement program and for related costs, including the costsof issuance and sale of the obligations.new text end

Sec. 20.

new text beginSubd. 2a.new text end

new text beginUses of investment income.new text end

new text beginInterest or otherinvestment earnings on the proceeds of bonds issued under thissection and on a debt service account for bonds issued underthis section must be used only to:new text end

new text begin(1) pay capital expenditures and related expenses for whichthe obligations were authorized by this section;new text end

new text begin(2) to pay debt service on the obligations or to reduce thecouncil's property tax levy imposed to pay debt service onobligations issued under this section;new text end

new text begin(3) pay rebate or yield reduction payments for the bonds tothe United States;new text end

new text begin(4) redeem or purchase the bonds; or new text end

new text begin(5) make other payments with respect to the bonds that arenecessary or desirable to comply with federal tax rulesapplicable to the bonds or to comply with covenants made withrespect to the bonds.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for investmentearnings received after June 30, 2005.new text end

Sec. 21.

Subd. 2c.

Public facilities pool allocation.

From thebeginning of the calendar year and continuing for a period of120 days, the commissioner shall reserve deleted text begin$3,000,000 deleted text endnew text begin$5,000,000 new text endof the available bonding authority from the public facilitiespool for applications for public facilities projects to befinanced by the Western Lake Superior Sanitary District.Commencing on the second Tuesday in January and continuing oneach Monday through the last Monday in July, the commissionershall allocate available bonding authority from the publicfacilities pool to applications for eligible public facilitiesprojects received on or before the Monday of the precedingweek. If there are two or more applications for publicfacilities projects from the pool and there is insufficientavailable bonding authority to provide allocations for allprojects in any one week, the available bonding authority shallbe awarded by lot unless otherwise agreed to by the respectiveissuers.

Sec. 22.

Subdivision 1.

Notice of issue.

Each issuer that issuesbonds with an allocation received under this chapter shallprovide a notice of issue to the department on forms provided bythe department stating:

(1) the date of issuance of the bonds;

(2) the title of the issue;

(3) the principal amount of the bonds;

(4) the type of qualified bonds under federal tax law;

(5) the dollar amount of the bonds issued that were subjectto the annual volume cap; and

(6) for entitlement issuers, whether the allocation is fromcurrent year entitlement authority or is from carryforwardauthority.

For obligations that are issued as a part of a series ofobligations, a notice must be provided for each series. Apenalty of one-half of the amount of the application deposit notto exceed $5,000 shall apply to any issue of obligations forwhich a notice of issue is not provided to the department withinfive business days after issuance or before deleted text beginthe last Monday deleted text endnew text begin4:30p.m. on the last business day new text endin December, whichever occursfirst. Within 30 days after receipt of a notice of issue thedepartment shall refund a portion of the application depositequal to one percent of the amount of the bonding authorityactually issued if a one percent application deposit was made,or equal to two percent of the amount of the bonding authorityactually issued if a two percent application deposit was made,less any penalty amount.

Sec. 23.

Subd. 4.

Net debt.

"Net debt" means the amount remainingafter deducting from its gross debt the amount of currentrevenues which are applicable within the current fiscal year tothe payment of any debt and the aggregate of the principal ofthe following:

(1) Obligations issued for improvements which are payablewholly or partly from the proceeds of special assessments leviedupon property specially benefited thereby, including those whichare general obligations of the municipality issuing them, if themunicipality is entitled to reimbursement in whole or in partfrom the proceeds of the special assessments.

(2) Warrants or orders having no definite or fixed maturity.

(3) Obligations payable wholly from the income from revenueproducing conveniences.

(5) Obligations issued for the acquisition, and bettermentof public waterworks systems, and public lighting, heating orpower systems, and of any combination thereof or for any otherpublic convenience from which a revenue is or may be derived.

(6) Debt service loans and capital loans made to a schooldistrict under the provisions of sections 126C.68 and 126C.69.

(7) Amount of all money and the face value of allsecurities held as a debt service fund for the extinguishment ofobligations other than those deductible under this subdivision.

Sec. 24.

Subdivision 1.

Statutory cities.

Any statutory city mayissue bonds or other obligations for the acquisition orbetterment of public buildings, means of garbage disposal,hospitals, nursing homes, homes for the aged, schools,libraries, museums, art galleries, parks, playgrounds, stadia,sewers, sewage disposal plants, subways, streets, sidewalks,warning systems; for any utility or other public conveniencefrom which a revenue is or may be derived; for a permanentimprovement revolving fund; for changing, controlling orbridging streams and other waterways; for the acquisition andbetterment of bridges and roads within two miles of thecorporate limitsnew text begin;new text endfor the acquisition of development rights inthe form of conservation easements under chapter 84C; and foracquisition of equipment for snow removal, street constructionand maintenance, or fire fighting. Without limitation by theforegoing the city may issue bonds to provide money for anyauthorized corporate purpose except current expenses.

Sec. 25.

Subd. 3.

Counties.

Any county may issue bonds for theacquisition or betterment of courthouses, county administrativebuildings, health or social service facilities, correctionalfacilities, law enforcement centers, jails, morgues, libraries,parks, and hospitals, for roads and bridges within the county orbordering thereon and for road equipment and machinery and forambulances and related equipmentnew text begin;new text endfor the acquisition ofdevelopment rights in the form of conservation easements underchapter 84C, and for capital equipment for the administrationand conduct of elections providing the equipment is uniformcountywide, except that the power of counties to issue bonds inconnection with a library shall not exist in Hennepin County.

Sec. 26.

Subd. 4.

Towns.

Any town may issue bonds for theacquisition and betterment of town halls, town roads andbridges, nursing homes and homes for the aged, and foracquisition of equipment for snow removal, road construction ormaintenance, and fire fightingnew text begin;new text endfor the acquisition ofdevelopment rights in the form of conservation easements underchapter 84Cnew text begin;new text endand for the acquisition and betterment of anybuildings to house and maintain town equipment.

Subdivision 1.

Definitions.

(b) "Capital improvement" means acquisition or bettermentof public lands, buildings or other improvements for the purposeof a city hall, new text begintown hall, library,new text endpublic safety facility, andpublic works facility. An improvement must have an expecteduseful life of five years or more to qualify. Capitalimprovement does not include light rail transit or any activityrelated to it, or a park, deleted text beginlibrary,deleted text endroad, bridge, administrativebuilding other than a city new text beginor town new text endhall, or land for any ofthose facilities.

(c) deleted text begin"City" deleted text endnew text begin"Municipality" new text endmeans a home rule charter orstatutory city new text beginor a town described in section 368.01,subdivision 1 or 1anew text end.

(b) Before the issuance of bonds qualifying under thissection, the deleted text begincity deleted text endnew text beginmunicipality new text endmust publish a notice of itsintention to issue the bonds and the date and time of thehearing to obtain public comment on the matter. The notice mustbe published in the official newspaper of the deleted text begincity deleted text endnew text beginmunicipality new text endor in a newspaper of general circulation in the deleted text begincity deleted text endnew text beginmunicipalitynew text end. Additionally, the notice may be posted on theofficial Web site, if any, of the deleted text begincity deleted text endnew text beginmunicipalitynew text end. The noticemust be published at least 14 but not more than 28 days beforethe date of the hearing.

(c) A deleted text begincity deleted text endnew text beginmunicipality new text endmay issue the bonds only afterobtaining the approval of a majority of the voters voting on thequestion of issuing the obligations, if a petition requesting avote on the issuance is signed by voters equal to five percentof the votes cast in the deleted text begincity deleted text endnew text beginmunicipality new text endin the last generalelection and is filed with the deleted text begincity deleted text endclerk within 30 days afterthe public hearing. The commissioner of revenue shall prepare asuggested form of the question to be presented at the election.

Sec. 29.

Subd. 3.

Capital improvement plan.

(a) A deleted text begincity deleted text endnew text beginmunicipality new text endmay adopt a capital improvement plan. The planmust cover at least a five-year period beginning with the dateof its adoption. The plan must set forth the estimatedschedule, timing, and details of specific capital improvementsby year, together with the estimated cost, the need for theimprovement, and sources of revenue to pay for the improvement.In preparing the capital improvement plan, the deleted text begincity council deleted text endnew text begingoverning body new text endmust consider for each project and for theoverall plan:

(1) the condition of the deleted text begincity's deleted text endnew text beginmunicipality's new text endexistinginfrastructure, including the projected need for repair orreplacement;

Sec. 30.

Subd. 4.

Limitations on amount.

A deleted text begincity deleted text endnew text beginmunicipality new text endmaynot issue bonds under this section if the maximum amount ofprincipal and interest to become due in any year on all theoutstanding bonds issued under this section, including the bondsto be issued, will equal or exceed deleted text begin0.05367 deleted text endnew text begin0.16 new text endpercent of new text beginthe new text endtaxable market value of property in the deleted text begincounty deleted text endnew text beginmunicipalitynew text end.Calculation of the limit must be made using the taxable marketvalue for the taxes payable year in which the obligations areissued and sold. new text beginIn the case of a municipality with apopulation of 2,500 or more, the bonds are subject to the netdebt limits under section 475.53. In the case of a sharedfacility in which more than one municipality participates, uponcompliance by each participating municipality with therequirements of subdivision 2, the limitations in thissubdivision and the net debt represented by the bonds shall beallocated to each participating municipality in proportion toits required financial contribution to the financing of theshared facility, as set forth in the joint powers agreementrelating to the shared facility.new text endThis section does not limitthe authority to issue bonds under any other special or generallaw.

Sec. 31.

Subd. 3b.

Street reconstruction.

(a) A municipality may,without regard to the election requirement under subdivision 1,issue and sell obligations for street reconstruction, if thefollowing conditions are met:

(1) the streets are reconstructed under a streetreconstruction plan that describes the streets to bereconstructed, the estimated costs, and any plannedreconstruction of other streets in the municipality over thenext five years, and the plan and issuance of the obligationshas been approved by a vote of all of the members of thegoverning body following a public hearing for which notice hasbeen published in the official newspaper at least ten days butnot more than 28 days prior to the hearing; and

(2) if a petition requesting a vote on the issuance issigned by voters equal to five percent of the votes cast in thelast municipal general election and is filed with the municipalclerk within 30 days of the public hearing, the municipality mayissue the bonds only after obtaining the approval of a majorityof the voters voting on the question of the issuance of theobligations.

(b) Obligations issued under this subdivision are subjectto the debt limit of the municipality and are not excluded fromnet debt under section 475.51, subdivision 4.

(c) For purposes of this subdivision, street reconstructionincludes utility replacement and relocation and other activitiesincidental to the street reconstruction, deleted text beginbut deleted text endnew text beginturn lanes andother improvements having a substantial public safety function,realignments, other modifications to intersect with state andcounty roads, and the local share of state and county roadprojects.new text end

new text begin(d) Except in the case of turn lanes, safety improvements,realignments, intersection modifications, and the local share ofstate and county road projects, street reconstruction new text enddoes notinclude the portion of project cost allocable to widening astreet or adding curbs and gutters where none previously existed.

Sec. 32.

new text beginSubd. 10.new text end

new text beginLevy adjustments for aiddecreases.new text end

new text beginNotwithstanding any local ordinance or charterprovision, a city whose certified aid under subdivision 9 isless than the amount it received in the previous year under thesame subdivision may increase its levy payable in the same yearas the certified aid is paid by an amount equal to the aiddecrease for that year.new text end

Subd. 2.

Local payments.

School districts that arerequired in Laws 1988, chapter 718, article 7, sections 62 and63, Laws 1989, chapter 329, article 5, section 20, Laws 1990,chapter 604, article 8, section 13, Laws 1992, chapter 499,article 5, section 29, deleted text beginand by sections 18 to 20 deleted text endnew text beginLaws 1996,chapter 412, article 5, sections 20 to 22, and Laws 2000,chapter 489, article 5, sections 24 to 26new text end, to impose levies topay debt service on the bonds issued under those provisions tothe extent the principal and interest on the bonds is not paidby distributions from the taconite environmental protection fundand the northeast Minnesota economic protection trust, may paytheir portion of the principal and interest from any fundsavailable to them. To the extent a school district uses fundsother than the proceeds of a property tax levy to pay its shareof the principal and interest on the bonds, the requirement toimpose a property tax to pay the local share does not apply tothe school district.

deleted text begin(a) A member shall, at the request of the authority, levy atax in any year for the benefit of the authority.deleted text endnew text beginThe authorityis a special taxing district as defined in Minnesota Statutes,section 275.066, clause (13), with the power to adopt andcertify a property tax levy to the county auditor. Theauthority may levy a tax in any year for the benefit of theauthority.new text endThe tax deleted text beginis,deleted text endfor each memberdeleted text begin,deleted text endnew text beginis new text enda pro rata portionof the total amount of tax requested by the authority based onthe taxable market value within deleted text begina deleted text endnew text beginthe new text endmember's jurisdiction, butin no event may the tax in any year exceed 0.01813 percent oftaxable market value. For purposes of this section, "taxablemarket value" has the meaning as given in Minnesota Statutes,section 273.032.

deleted text begin(b) The treasurer of each member city or town shall, within15 days after receiving the property tax settlements from thecounty treasurer, pay to the treasurer of the authority theamount collected for this purpose. The money must be used bythe authority for the purposes provided by sections 35 to 41.deleted text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for taxeslevied in 2005, payable in 2006, and thereafter.new text end

Sec. 35. new text beginCITY OF BEMIDJI; DURATION EXTENSION FOR TAXABATEMENT.new text end

new text beginNotwithstanding the limitation in Minnesota Statutes,section 469.1813, subdivision 6, the city of Bemidji may extendthe duration of the tax abatement given to support developmentwithin the fairgrounds district of the city for an additionalfour years beyond the duration permitted under that section.new text end

new text beginSubdivision 1.new text end

new text beginObligations.new text end

new text beginNotwithstanding anyprovision of law or charter to the contrary, the town of Whitemay pledge its general obligation, as defined in MinnesotaStatutes, section 475.51, subdivision 10, to secure thefinancing of local improvements as provided in this section.new text end

new text beginSubd. 2.new text end

new text beginSpecial rules.new text end

new text begin(a) The obligations are subjectto the provisions of Minnesota Statutes, chapter 429, except asprovided in this subdivision.new text end

new text begin(b) The obligations must be issued to finance:new text end

new text begin(1) the cost of local improvements described in MinnesotaStatutes, section 429.021, located within the area referred toin Laws 2003, chapter 119, section 2;new text end

new text begin(2) any reserves required to market the obligation; and new text end

new text begin(3) the costs of issuing the obligations.new text end

new text begin(c) The obligations must be additionally secured by specialassessments levied or to be levied by the city of Biwabik withinthe area referred to in paragraph (b).new text end

new text begin(d) The pledge of special assessments by the city ofBiwabik for the payment of the obligations must be made bywritten agreement by and between the town of White and the cityof Biwabik and must be filed with the county auditor.new text end

new text begin(f) The obligations are not included in computing any debtlimitation applicable to the town of White or the city ofBiwabik, and the levy of taxes under Minnesota Statutes, section475.61, to pay principal of and interest on the obligations isnot subject to any levy limitation.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective upon localapproval by the town of White and the city of Biwabik incompliance with the requirements of Minnesota Statutes, section645.021.new text end

Sec. 37. new text beginSAUK RIVER WATERSHED DISTRICT.new text end

new text beginNotwithstanding Minnesota Statutes, section 103D.905,subdivision 3, the Sauk River Watershed District may annuallylevy up to 0.01 percent of taxable market value for its generalfund.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective, without localapproval, beginning with the taxes levied in 2005, payable in2006.new text end

Sec. 38. new text beginCITY OF ST. PAUL; RIVERCENTRE COMPLEXOPERATION.new text end

new text beginSubdivision 1.new text end

new text beginDefinitions.new text end

new text begin(a) For the purposes of thissection, the terms defined in this subdivision have the meaningsgiven them.new text end

new text begin(b) "City" means the city of St. Paul, its mayor, citycouncil, and any other board, authority, commission, or officerauthorized by law, charter, or ordinance to exercise city powersof the nature referred to in this section.new text end

new text begin(c) "RiverCentre complex" means collectively theauditorium; convention, conference and education center; arena;and parking ramp facilities presently and commonly known as theRoy Wilkins Auditorium, St. Paul RiverCentre, Xcel EnergyCenter, and RiverCentre Parking Ramp, including all property,real or personal, tangible or intangible, located in the city,intended to be used as part of the RiverCentre complex oradditions to or extensions of it.new text end

new text beginSubd. 2.new text end

new text beginCreation of nonprofit organization.new text end

new text beginAs requiredunder Minnesota Statutes, section 465.717, and notwithstandingany other law, city charter provision, or ordinance to thecontrary, the city of St. Paul may participate in the creationof a nonprofit organization for the purposes provided in thissection.new text end

new text beginSubd. 3.new text end

new text beginGoverning board.new text end

new text begin(a) The mayor of the city,subject to approval by the city council, shall appoint amajority of the members of the governing board of the nonprofitorganization performing all or a part of the activitiesnecessary to carry out the purposes specified in this section.The mayor may designate any officer or employee of the city toserve as a member of the governing board of any nonprofitorganization.new text end

new text begin(b) In addition to the appointments made by the mayor underparagraph (a), the mayor shall designate three members of thecity council to serve on the governing board of the nonprofitorganization.new text end

new text begin(c) Notwithstanding any provision contained in the articlesof incorporation and bylaws of the nonprofit organization, anymember of the governing board appointed by the mayor may beremoved only by the mayor for cause.new text end

new text begin(d) The governing board of the nonprofit organization shallselect, subject to the approval of the mayor, a president toserve as chief executive officer and general manager of thenonprofit organization.new text end

new text begin(e) The procedures in Minnesota Statutes, section 317A.255,subdivision 1, paragraph (b), relating to director conflicts ofinterest, are not required if the contract or other transactionis between the city and the nonprofit organization.new text end

new text beginSubd. 4.new text end

new text beginThe city may enter into anagreement with the nonprofit organization created in subdivision2 to equip, maintain, manage, and operate all or a portion ofthe RiverCentre complex and to manage and operate a conventionbureau to market and promote the city as a tourist or conventioncenter. Except as otherwise provided in this section, thenonprofit organization may only contract and utilize and expendfunds for these purposes under the direction of its governingboard, subject to the accounting, financial reporting, and otherconditions that the city may prescribe in a contract made underthis section between the city and the nonprofit organization.The nonprofit organization may use the services of the office ofthe city attorney and the city's purchasing department. Allactivities performed to carry out these purposes are deemed tobe for a public purpose.new text end

new text beginSubd. 5.new text end[BONDHOLDERS' RIGHTS AND RIVERCENTRE COMPLEX TAXEXEMPTIONS PRESERVED.] new text begin(a) The city must protect the rights ofholders of bonds issued for the RiverCentre complex, includingpreserving the tax-exempt status of the bonds.new text end

new text begin(b) The use and operation of the RiverCentre complex by thenonprofit organization with which the city contracts under thisact is a use, lease, or occupancy for public, governmental, andmunicipal purposes, and the complex is exempt from taxation bythe state or any political subdivision of the state during suchuse, to the extent it would be exempt if the complex wasequipped, maintained, managed, and operated by the city.new text end

new text begin(c) Gross receipts of tickets and admissions to events atthe RiverCentre complex sponsored by the nonprofit organizationcreated in this section do not qualify for the sales taxexemption under Minnesota Statutes, section 297A.70, subdivision10.new text end

new text beginSubd. 6.new text end

new text beginApplicable general laws.new text end

new text beginThe following statutesapply to the nonprofit organization with which the citycontracts under this section the same as they apply to the city:new text end

new text begin(1) Minnesota Statutes, chapter 13D, the Minnesota OpenMeeting Law; and new text end

new text begin(2) Minnesota Statutes, chapter 13, the Government DataPractices Act.new text end

new text beginSubd. 7.new text end

new text beginSuccession.new text end

new text beginThe nonprofit organization withwhich the city contracts under this section is the successor toall powers, rights, assets, privileges, and interests held andenjoyed by the RiverCentre authority on the effective date ofthis section, and established by the provisions of Laws 1967,chapter 459, sections 1, 2, 4, and 8, subdivisions 2 and 3,clause (3), as amended; Laws 1982, chapter 523, article 25,sections 4 and 5; Laws 1998, chapter 404, sections 81 and 82;and Minnesota Statutes, section 297A.98. On the effective dateof the contract between the city and the nonprofit organizationauthorized by this section, the RiverCentre authority ceases toexist for only so long as the contract is in effect, and allother laws or provisions specifically relating to theRiverCentre authority and the RiverCentre complex that are nototherwise referenced in this section, do not apply to thenonprofit organization.new text end

new text beginSubd. 8.new text end

new text beginLiability.new text end

new text beginThe nonprofit organization withwhich the city contracts under this section is a "municipality,"and the officers, directors, employees, and agents of thenonprofit organization are "employees, officers, or agents,"under Minnesota Statutes, chapter 466, relating to tortliability. The city must defend, save harmless, and indemnifythe nonprofit organization, including the nonprofit's officers,directors, employees, and agents, against any claim or demandarising out of the nonprofit organization's performance underthe contract.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day afterthe city council and the chief clerical officer of the city ofSt. Paul have timely completed their compliance with MinnesotaStatutes, section 645.023, subdivisions 2 and 3.new text end

new text beginSubdivision 1.new text end

new text beginIssuance; purpose.new text end

new text beginNotwithstanding anyprovision of Minnesota Statutes, chapter 298, to the contrary,the commissioner of Iron Range resources and rehabilitation mayissue revenue bonds in a principal amount of $15,000,000 in oneor more series, and bonds to refund those bonds. The proceedsof the bonds must be used to make grants to school districtslocated in the taconite tax relief area defined in MinnesotaStatutes, section 273.134, or the taconite assistance areadefined in Minnesota Statutes, section 273.1341, to be used bythe school districts to pay for health, safety, and maintenanceimprovements but only if the school district has levied themaximum amount allowable under law for those purposes.new text end

new text beginSubd. 2.new text end

new text beginAppropriation.new text end

new text beginThere is annually appropriatedfrom the distribution of taconite production tax revenues to thetaconite environmental protection fund pursuant to MinnesotaStatutes, section 298.28, subdivision 11, and to the Douglas J.Johnson economic protection trust pursuant to MinnesotaStatutes, section 298.28, subdivisions 9 and 11, in equalshares, an amount sufficient to pay when due the principal andinterest on the bonds issued pursuant to subdivision 1. If theannual distribution to the Douglas J. Johnson economicprotection trust is insufficient to pay its share afterfulfilling any obligations of the trust under MinnesotaStatutes, section 298.225 or 298.293, the deficiency isappropriated from the taconite environmental protection fund.The appropriation under this subdivision terminates upon paymentor maturity of the last of the bonds issued under this section.new text end

new text beginSubd. 3.new text end

new text beginCredit enhancement.new text end

new text beginThe bonds issued under thissection are "debt obligations" and the commissioner of IronRange resources and rehabilitation is a "district" for purposesof Minnesota Statutes, section 126C.55, provided that advancesmade under Minnesota Statutes, section 126C.55, subdivision 2,are not subject to Minnesota Statutes, section 126C.55,subdivisions 4 to 7.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the dayfollowing final enactment.new text end

new text beginSubdivision 1.new text end

new text beginPowers.new text end

new text beginIn addition to the powers grantedin Minnesota Statutes, chapter 116A, the county board for CrowWing County, by resolution, may grant the following powers to asewer district created by the county board under MinnesotaStatutes, chapter 116A:new text end

new text begin(1) provide that an authorized representative of thedistrict, after presentation of credentials, may enter atreasonable times any premise to inspect or maintain anindividual sewage treatment system, as defined in MinnesotaStatutes, section 115.55, subdivision 1, paragraph (g);new text end

new text begin(2) include areas of the county within the sewer districtthat are not contiguous and establish different systems forwastewater treatment in specific areas of the county;new text end

new text begin(3) provide that each special service area that is managedby the sewer system or combination thereof constitutes a systemunder Minnesota Statutes, chapter 116A;new text end

new text begin(4) delegate to the sewer district, by resolution, all or aportion of its administrative and enforcement obligations withrespect to individual sewage treatment systems under MinnesotaStatutes, chapter 115, and rules adopted by the PollutionControl Agency;new text end

new text begin(5) modify any individual sewage treatment system toprovide reasonable access to it for inspection and maintenance;and new text end

new text begin(6) neither the approval nor the waiver of the countyboard, nor confirmation by order of the district court, isrequired for the sewer commission to exercise the powers setforth in Minnesota Statutes, section 116A.24.new text end

new text beginSubd. 2.new text end

new text beginReport.new text end

new text beginIf the Crow Wing County Board exercisesthe powers granted under subdivision 1, the county shall reportby January 15, 2009, to the senate and house committees withjurisdiction over environmental policy and taxes on theestablishment and operation of the sewer district. The reportmust include:new text end

new text begin(1) a description of the implementation of the additionalpowers granted under subdivision 1;new text end

new text begin(2) available information on the effectiveness of theadditional powers to control pollution in the county; and new text end

new text begin(3) any recommendations for changes to Minnesota Statutes,chapter 116A, to broaden the authority for sewer districts toinclude any of the additional powers granted under subdivision 1.new text end

Sec. 43. new text beginREPEALER.new text end

Sec. 44. new text beginEFFECTIVE DATE.new text end

new text begin(a) Section 1 is effective the day after the city counciland the chief clerical officer of the city of St. Paul havetimely completed their compliance with Minnesota Statutes,section 645.023, subdivisions 2 and 3.new text end

new text begin(b) Except as otherwise provided, this article is effectivethe day following final enactment.new text end

ARTICLE 2

TAX INCREMENT FINANCING

Section 1.

116J.556 LOCAL MATCH REQUIREMENT.

deleted text begin(a) deleted text endIn order to qualify for a grant under sections 116J.551to 116J.557, the municipality must pay for at least one-quarterof the project costs as a local match. The municipality shallpay an amount of the project costs equal to at least 12 percentof the cleanup costs from the municipality's general fund, aproperty tax levy for that purpose, or other unrestricted moneyavailable to the municipality (excluding tax increments). Theseunrestricted moneys may be spent for project costs, other thancleanup costs, and qualify for the local match payment equal to12 percent of cleanup costs. The rest of the local match may bepaid with tax increments, regional, state, or federal moneyavailable for the redevelopment of brownfields or any othermoney available to the municipality.

deleted text begin(b) If the development authority establishes a taxincrement financing district or hazardous substance subdistricton the site to pay for part of the local match requirement, thedistrict or subdistrict must be decertified when an amount oftax increments equal to no more than three times the costs ofimplementing the response action plan for the site and theadministrative costs for the district or subdistrict have beenreceived, after deducting the amount of the state grant.deleted text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the dayfollowing final enactment.new text end

(c) For property to qualify for exemption under paragraph(a), the occupant must be a qualified business, as defined insection 469.310.

(d) The exemption applies beginning for the firstassessment year after designation of the job opportunitybuilding zone by the commissioner of employment and economicdevelopment. The exemption applies to each assessment year thatbegins during the duration of the job opportunity building zoneand to property occupied by July 1 of the assessment year by aqualified business. This exemption does not apply to:

(1) the levy under section 475.61 or similar levyprovisions under any other law to pay general obligation bonds;or

(2) a levy under section 126C.17, if the levy was approvedby the voters before the designation of the job opportunitybuilding zone.

new text begin(e) This subdivision does not apply to captured net taxcapacity in a tax increment financing district to the extentnecessary to meet the debt repayment obligations of theauthority if the property is also located within an agriculturalprocessing zone.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective beginning fortaxes payable in 2006.new text end

Sec. 5.

Subd. 11.

Housing district.

"Housing district" means atype of tax increment financing district which consists of aproject, or a portion of a project, intended for occupancy, inpart, by persons or families of low and moderate income, asdefined in chapter 462A, Title II of the National Housing Act of1934, the National Housing Act of 1959, the United StatesHousing Act of 1937, as amended, Title V of the Housing Act of1949, as amended, any other similar present or future federal,state, or municipal legislation, or the regulations promulgatedunder any of those actsdeleted text begin. A district does not qualify as ahousing district under this subdivision if the fair market valueof the improvements which are constructed in the district forcommercial uses or for uses other than low and moderate incomehousing consists of more than 20 percent of the total fairmarket value of the planned improvements in the development planor agreement. The fair market value of the improvements may bedetermined using the cost of construction, capitalized income,or other appropriate method of estimating market value deleted text endnew text begin, and thatsatisfies the requirements of section 469.1761new text end. Housing projectmeans a project, or a portion of a project, that meets all ofthe qualifications of a housing district under this subdivision,whether or not actually established as a housing district.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for districtsfor which the request for certification was filed with thecounty auditor after October 5, 1989, except (1) the newlanguage is effective for requests for certification made afterJune 30, 2005, and (2) the fair market value of the improvementswhich are constructed for commercial uses in a district forwhich the request for certification was filed with the countyauditor after October 5, 1989, and before July 1, 2005, may notexceed more than 20 percent of total fair market value of theplanned improvements in the development plan or agreement.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for taxincrement financing districts, regardless of when the requestfor certification was made, including districts for which therequest for certification was made before August 1, 1979,provided that the amendment to clause (2) applies only to theextent that the underlying provisions of clause (2) apply to thedistrict and to the sale or lease under prior law. Thiseffective date does not affect the application of clause (1),(3), or (4).new text end

Sec. 7.

Subdivision 1.

Tax increment financing plan.

A taxincrement financing plan shall contain:

(1) a statement of objectives of an authority for theimprovement of a project;

(2) a statement as to the development program for theproject, including the property within the project, if any, thatthe authority intends to acquirenew text begin, identified by parcel number,identifiable property name, block, or other appropriate meansindicating the area in which the authority intends to acquirepropertiesnew text end;

(3) a list of any development activities that the planproposes to take place within the project, for which contractshave been entered into at the time of the preparation of theplan, including the names of the parties to the contract, theactivity governed by the contract, the cost stated in thecontract, and the expected date of completion of that activity;

(4) identification or description of the type of any otherspecific development reasonably expected to take place withinthe project, and the date when the development is likely tooccur;

(5) estimates of the following:

(i) cost of the project, including administrative expenses,except that if part of the cost of the project is paid orfinanced with increment from the tax increment financingdistrict, the tax increment financing plan for the district mustcontain an estimate of the amount of the cost of the project,including administrative expenses, that will be paid or financedwith tax increments from the district;

(ii) amount of bonded indebtedness to be incurred;

(iii) sources of revenue to finance or otherwise pay publiccosts;

(iv) the most recent net tax capacity of taxable realproperty within the tax increment financing district and withinany subdistrict;

(v) the estimated captured net tax capacity of the taxincrement financing district at completion; and

(vi) the duration of the tax increment financing district'sand any subdistrict's existence;

(6) statements of the authority's alternate estimates ofthe impact of tax increment financing on the net tax capacitiesof all taxing jurisdictions in which the tax increment financingdistrict is located in whole or in part. For purposes of onestatement, the authority shall assume that the estimatedcaptured net tax capacity would be available to the taxingjurisdictions without creation of the district, and for purposesof the second statement, the authority shall assume that none ofthe estimated captured net tax capacity would be available tothe taxing jurisdictions without creation of the district orsubdistrict;

(7) identification and description of studies and analysesused to make the determination set forth in subdivision 3,clause (2); and

(8) identification of all parcels to be included in thedistrict or any subdistrict.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for taxincrement financing plans and amendments to tax incrementfinancing plans approved after June 30, 2005.new text end

Sec. 8.

Subd. 2.

Consultations; comment and filing.

new text begin(a) new text endBeforeformation of a tax increment financing district, the authorityshall provide the county auditor and clerk of the school boardwith the proposed tax increment financing plan for the districtand the authority's estimate of the fiscal and economicimplications of the proposed tax increment financing district.The authority must provide the proposed tax increment financingplan and the information on the fiscal and economic implicationsof the plan to the county auditor and the clerk of the schooldistrict board at least 30 days before the public hearingrequired by subdivision 3. The information on the fiscal andeconomic implications may be included in or as part of the taxincrement financing plan. The county auditor and clerk of theschool board shall provide copies to the members of the boards,as directed by their respective boards. The 30-day requirementis waived if the boards of the county and school district submitwritten comments on the proposal and any modification of theproposal to the authority after receipt of the information.

new text begin(b) For purposes of this subdivision, "fiscal and economicimplications of the proposed tax increment financing district"includes:new text end

new text begin(1) an estimate of the total amount of tax increment thatwill be generated over the life of the district;new text end

new text begin(2) a description of the probable impact of the district oncity-provided services such as police and fire protection,public infrastructure, and borrowing costs attributable to thedistrict;new text end

new text begin(3) the estimated amount of tax increments over the life ofthe district that would be attributable to school districtlevies, assuming the school district's share of the total localtax rate for all taxing jurisdictions remained the same;new text end

new text begin(4) the estimated amount of tax increments over the life ofthe district that would be attributable to county levies,assuming the county's share of the total local tax rate for alltaxing jurisdictions remained the same; and new text end

new text begin(5) any additional information requested by the county orthe school district that would enable it to determine additionalcosts that will accrue to it due to the development proposed forthe district.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for alldistricts for which certification is requested after December31, 2005.new text end

Sec. 9.

Subd. 4a.

Filing plan with state.

(a) The authority mustfile a copy of the tax increment financing plan and amendmentsto the plan with the commissioner of revenue new text beginand the stateauditornew text end. The authority must also file a copy of the developmentplan or the project plan for the project area with thecommissioner of revenuedeleted text begin. The commissioner of revenue shallprovide a copy of a plan to the state auditor upon request deleted text endnew text beginandthe state auditornew text end.

(b) Filing under this subdivision must be made within 60days after the latest of:

(1) the filing of the request for certification of thedistrict;

(2) approval of the plan by the municipality; or

(3) adoption of the plan by the authority.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for plans andamendments approved after June 30, 2005.new text end

Sec. 10.

Subd. 5.

Annual disclosure.

An annual statement showingfor each district the information required to be reported undersubdivision 6, paragraph (c), clauses (1), (2), (3), (11),(12), deleted text begin(20), and (21) deleted text endnew text begin(18), and (19)new text end; the amounts of taxincrement received and expended in the reporting period; and anyadditional information the authority deems necessary must bepublished in a newspaper of general circulation in themunicipality that approved the tax increment financing plan.The annual statement must inform readers that additionalinformation regarding each district may be obtained from theauthority, and must explain how the additional information maybe requested. The authority must publish the annual statementfor a year no later than August 15 of the next year. Theauthority must identify the newspaper of general circulation inthe municipality to which the annual statement has been or willbe submitted for publication and provide a copy of the annualstatement to the county board, the county auditor, the schoolboard, the state auditor, and, if the authority is other thanthe municipality, the governing body of the municipality on orbefore August 1 of the year in which the statement must bepublished.

The disclosure requirements imposed by this subdivisionapply to districts certified before, on, or after August 1, 1979.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for reportsrequired to be filed after December 31, 2005.new text end

(1) provide for full disclosure of the sources and uses ofpublic funds in the district;

(2) permit comparison and reconciliation with the affectedlocal government's accounts and financial reports;

(3) permit auditing of the funds expended on behalf of adistrict, including a single district that is part of amultidistrict project or that is funded in part or whole throughthe use of a development account funded with tax increments fromother districts or with other public money;

(4) be consistent with generally accepted accountingprinciples.

(b) The authority must annually submit to the state auditora financial report in compliance with paragraph (a). Copies ofthe report must also be provided to the county auditor and tothe governing body of the municipality, if the authority is notthe municipality. To the extent necessary to permit compliancewith the requirement of financial reporting, the county and anyother appropriate local government unit or private entity mustprovide the necessary records or information to the authority orthe state auditor as provided by the system of accounting andfinancial reporting developed pursuant to paragraph (a). Theauthority must submit the annual report for a year on or beforeAugust 1 of the next year.

(8) the date the municipality approved the tax incrementfinancing plan and the date of approval of any modification ofthe tax increment financing plan, the approval of which requiresnotice, discussion, a public hearing, and findings undersubdivision 4, paragraph (a);

(9) the date the authority first requested certification ofthe original net tax capacity of the district and the date ofthe request for certification regarding any parcel added to thedistrict;

(10) the date the county auditor first certified theoriginal net tax capacity of the district and the date ofcertification of the original net tax capacity of any parceladded to the district;

(11) the month and year in which the authority has receivedor anticipates it will receive the first increment from thedistrict;

(12) the date the district must be decertified;

(13) for the reporting period and prior years of thedistrict, the actual amount received from, at least, thefollowing categories:

(v) public park facilities, facilities for social,recreational, or conference purposes, or other similar publicimprovements; and

(vi) transfers to funds not exclusively associated with thedistrict;

(15) deleted text beginfor properties sold to developers, the total cost ofthe property to the authority and the price paid by thedeveloper;deleted text end

deleted text begin(16) the amount of any payments and the value of anyin-kind benefits, such as physical improvements and the use ofbuilding space, that are paid or financed with tax incrementsand are provided to another governmental unit other than themunicipality during the reporting period;deleted text end

deleted text begin(17) deleted text endthe amount of any payments for activities andimprovements located outside of the district that are paid foror financed with tax increments;

deleted text begin(18) deleted text endnew text begin(16) new text endthe amount of payments of principal and interestthat are made during the reporting period on any nondefeased:

(i) general obligation tax increment financing bonds;

(ii) other tax increment financing bonds; and

(iii) notes and pay-as-you-go contracts;

deleted text begin(19) deleted text endnew text begin(17) new text endthe principal amount, at the end of the reportingperiod, of any nondefeased:

(i) general obligation tax increment financing bonds;

(ii) other tax increment financing bonds; and

(iii) notes and pay-as-you-go contracts;

deleted text begin(20) deleted text endnew text begin(18) new text endthe amount of principal and interest paymentsthat are due for the current calendar year on any nondefeased:

(i) general obligation tax increment financing bonds;

(ii) other tax increment financing bonds; and

(iii) notes and pay-as-you-go contracts;

deleted text begin(21) deleted text endnew text begin(19) new text endif the fiscal disparities contribution underchapter 276A or 473F for the district is computed under section469.177, subdivision 3, paragraph (a), the amount of increasedproperty taxes imposed on other properties in the municipalitythat approved the tax increment financing plan as a result ofthe fiscal disparities contribution;

deleted text begin(23) deleted text endnew text begin(20) new text endthe estimate, if any, contained in the taxincrement financing plan of the amount of the cost of theproject, including administrative expenses, that will be paid orfinanced with tax increment; and

new text beginEFFECTIVE DATE.new text end

Sec. 12.

Subd. 2.

Excess increments.

(a) The authority shallannually determine the amount of excess increments for adistrict, if any. This determination must be based on the taxincrement financing plan in effect on December 31 of the yearand the increments and other revenues received as of December 31of the year. new text beginThe authority must spend or return the excessincrements under paragraph (c) within nine months after the endof the year.new text end

(b) For purposes of this subdivision, "excess increments"equals the excess of:

(1) total increments collected from the district since itscertification, reduced by any excess increments paid underparagraph (c), clause (4), for a prior year, over

(2) the total costs authorized by the tax incrementfinancing plan to be paid with increments from the district,reduced, but not below zero, by the sum of:

(i) the amounts of those authorized costs that have beenpaid from sources other than tax increments from the district;

(ii) revenues, other than tax increments from the district,that are dedicated for or otherwise required to be used to paythose authorized costs and that the authority has received andthat are not included in item (i); deleted text beginand deleted text end

(iii) the amount of principal and interest obligations dueon outstanding bonds after December 31 of the year and notprepaid under paragraph (c) in a prior yearnew text begin; and new text end

new text begin(iv) increased by the sum of the transfers of incrementsmade under section 469.1763, subdivision 6, to reduce deficitsin other districts made by December 31 of the yearnew text end.

(c) The authority shall use excess increment only to do oneor more of the following:

(1) prepay any outstanding bonds;

(2) discharge the pledge of tax increment for anyoutstanding bonds;

(3) pay into an escrow account dedicated to the payment ofany outstanding bonds; or

(4) return the excess amount to the county auditor whoshall distribute the excess amount to the city or town, county,and school district in which the tax increment financingdistrict is located in direct proportion to their respectivelocal tax rates.

(d) new text beginFor purposes of a district for which the request forcertification was made prior to August 1, 1979, excessincrements equal the amount of increments on hand on December31, less the principal and interest obligations due onoutstanding bonds or advances, qualifying under subdivision 1c,clauses (1), (2), and (5), after December 31 of the year and notprepaid under paragraph (c).new text end

new text begin(e) new text endThe county auditor must report to the commissioner ofeducation the amount of any excess tax increment distributed toa school district within 30 days of the distribution.

new text begin(f) For purposes of this subdivision, "outstanding bonds"means bonds which are secured by increments from the district.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for districts,regardless of when the request for certification was made, andapplies to calculations of excess increments beginning incalendar year 2005.new text end

Sec. 13.

Subd. 4d.

Housing districts.

Revenue derived from taxincrement from a housing district must be used solely to financethe cost of housing projects as defined in deleted text beginsection deleted text endnew text beginsections new text end469.174, subdivision 11new text begin, and 469.1761new text end. The cost of publicimprovements directly related to the housing projects and theallocated administrative expenses of the authority may beincluded in the cost of a housing project.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for alldistricts to which the provisions of Minnesota Statutes, section469.1761, apply.new text end

Sec. 14.

Subdivision 1.

Requirement imposed.

new text begin(a) new text endIn order for atax increment financing district to qualify as a housingdistrictdeleted text begin,deleted text endnew text begin:new text end

new text begin(1) new text endthe income limitations provided in this section must besatisfiednew text begin; and new text end

new text begin(2) no more than 20 percent of the square footage ofbuildings that receive assistance from tax increments mayconsist of commercial, retail, or other nonresidential usesnew text end.

new text begin(b) new text endThe requirements imposed by this section apply todeleted text beginresidential deleted text endproperty receiving assistance financed with taxincrements, including interest reduction, land transfers at lessthan the authority's cost of acquisition, utility service orconnections, roads, new text beginparking facilities,new text endor other subsidies. Theprovisions of this section do not apply to districts located ina targeted area as defined in section 462C.02, subdivision 9,clause (e).

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for districtsfor which the request for certification was made after June 30,2005.new text end

Sec. 15.

Subd. 3.

Rental property.

For residential rentalproperty, the property must satisfy the income requirements fora qualified residential rental project as defined in section142(d) of the Internal Revenue Code. deleted text beginA property also satisfiesthe requirements of section 142(d) if 50 percent of theresidential units in the project are occupied by individualswhose income is 80 percent or less of area median gross income.deleted text endThe requirements of this subdivision apply for the duration ofthe tax increment financing district.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for districtsfor which the request for certification was made after June 30,2004.new text end

Sec. 16.

Subd. 2.

Expenditures outside district.

(a) For each taxincrement financing district, an amount equal to at least 75percent of the total revenue derived from tax increments paid byproperties in the district must be expended on activities in thedistrict or to pay bonds, to the extent that the proceeds of thebonds were used to finance activities in the district or to pay,or secure payment of, debt service on credit enhanced bonds.For districts, other than redevelopment districts for which therequest for certification was made after June 30, 1995, thein-district percentage for purposes of the preceding sentence is80 percent. Not more than 25 percent of the total revenuederived from tax increments paid by properties in the districtmay be expended, through a development fund or otherwise, onactivities outside of the district but within the definedgeographic area of the project except to pay, or secure paymentof, debt service on credit enhanced bonds. For districts, otherthan redevelopment districts for which the request forcertification was made after June 30, 1995, the poolingpercentage for purposes of the preceding sentence is 20percent. The revenue derived from tax increments for thedistrict that are expended on costs under section 469.176,subdivision 4h, paragraph (b), may be deducted first beforecalculating the percentages that must be expended within andwithout the district.

(b) In the case of a housing district, a housing project,as defined in section 469.174, subdivision 11, is an activity inthe district.

(c) All administrative expenses are for activities outsideof the district, except that if the only expenses for activitiesoutside of the district under this subdivision are for thepurposes described in paragraph (d), administrative expenseswill be considered as expenditures for activities in thedistrict.

(d) The authority may elect, in the tax increment financingplan for the district, to increase by up to ten percentagepoints the permitted amount of expenditures for activitieslocated outside the geographic area of the district underparagraph (a). As permitted by section 469.176, subdivision 4k,the expenditures, including the permitted expenditures underparagraph (a), need not be made within the geographic area ofthe project. Expenditures that meet the requirements of thisparagraph are legally permitted expenditures of the district,notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.To qualify for the increase under this paragraph, theexpenditures must:

(1) be used exclusively to assist housing that meets therequirement for a qualified low-income building, as that term isused in section 42 of the Internal Revenue Code;

(2) not exceed the qualified basis of the housing, asdefined under section 42(c) of the Internal Revenue Code, lessthe amount of any credit allowed under section 42 of theInternal Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to thehousing.

new text begin(e) For a district created within a biotechnology andhealth sciences industry zone as defined in section 469.330,subdivision 6, tax increment derived from such a district may beexpended outside of the district but within the zone only forexpenditures required for the construction of publicinfrastructure necessary to support the activities of the zone.new text end

Sec. 17.

Subd. 6.

Pooling permitted for deficits.

(a) Thissubdivision applies only to districts for which the request forcertification was made before August 1, 2001, and without regardto whether the request for certification was made prior toAugust 1, 1979.

(b) The municipality for the district may transferavailable increments from another tax increment financingdistrict located in the municipality, if the transfer isnecessary to eliminate a deficit in the district to which theincrements are transferred. A deficit in the district forpurposes of this subdivision means the lesser of the followingtwo amounts:

(1)(i) the amount due during the calendar year to paypreexisting obligations of the district; minus

(ii) the total increments collected or to be collected fromproperties located within the district that are available forthe calendar year including amounts collected in prior yearsthat are currently available; plus

(iii) total increments from properties located in otherdistricts in the municipality including amounts collected inprior years that are available to be used to meet the district'sobligations under this section, excluding this subdivision, orother provisions of law (but excluding a special tax undersection 469.1791 and the grant program under Laws 1997, chapter231, article 1, section 19, or Laws 2001, First Special Sessionchapter 5); or

(2) the reduction in increments collected from propertieslocated in the district for the calendar year as a result of thechanges in class rates in Laws 1997, chapter 231, article 1;Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243,and Laws 2001, First Special Session chapter 5, or theelimination of the general education tax levy under Laws 2001,First Special Session chapter 5.

new text beginThe authority may compute the deficit amount under clause(1) only (without regard to the limit under clause (2)) if theauthority makes an irrevocable commitment, by resolution, to useincrements from the district to which increments are to betransferred and any transferred increments are only used to paypreexisting obligations and administrative expenses for thedistrict that are required to be paid under section 469.176,subdivision 4h, paragraph (a).new text end

(c) A preexisting obligation means:

(1) bonds issued and sold before August 1, 2001, or bondsissued pursuant to a binding contract requiring the issuance ofbonds entered into before July 1, 2001, and bonds issued torefund such bonds or to reimburse expenditures made inconjunction with a signed contractual agreement entered intobefore August 1, 2001, to the extent that the bonds are securedby a pledge of increments from the tax increment financingdistrict; and

(2) binding contracts entered into before August 1, 2001,to the extent that the contracts require payments secured by apledge of increments from the tax increment financing district.

(d) The municipality may require a development authority,other than a seaway port authority, to transfer availableincrements including amounts collected in prior years that arecurrently available for any of its tax increment financingdistricts in the municipality to make up an insufficiency inanother district in the municipality, regardless of whether thedistrict was established by the development authority or anotherdevelopment authority. This authority applies notwithstandingany law to the contrary, but applies only to a developmentauthority that:

(1) was established by the municipality; or

(2) the governing body of which is appointed, in whole orpart, by the municipality or an officer of the municipality orwhich consists, in whole or part, of members of the governingbody of the municipality. The municipality may use thisauthority only after it has first used all available incrementsof the receiving development authority to eliminate theinsufficiency and exercised any permitted action under section469.1792, subdivision 3, for preexisting districts of thereceiving development authority to eliminate the insufficiency.

(e) The authority under this subdivision to spend taxincrements outside of the area of the district from which thetax increments were collected:

(1) is an exception to the restrictions under section469.176, deleted text beginsubdivision deleted text endnew text beginsubdivisions 4b, 4c, 4d, 4e,new text end4i, new text beginand 4j;the expenditure limits under section 469.176, subdivision 1c;new text endand the other provisions of this sectiondeleted text begin,deleted text endnew text begin;new text endand the percentagerestrictions under subdivision 2 must be calculated afterdeducting increments spent under this subdivision from the totalincrements for the district; and

(2) applies notwithstanding the provisions of the TaxIncrement Financing Act in effect for districts for which therequest for certification was made before June 30, 1982, or anyother law to the contrary.

(f) If a preexisting obligation requires the developmentauthority to pay an amount that is limited to the increment fromthe district or a specific development within the district andif the obligation requires paying a higher amount to the extentthat increments are available, the municipality may determinethat the amount due under the preexisting obligation equals thehigher amount and may authorize the transfer of increments underthis subdivision to pay up to the higher amount. The existenceof a guarantee of obligations by the individual or entity thatwould receive the payment under this paragraph is disregarded inthe determination of eligibility to pool under thissubdivision. The authority to transfer increments under thisparagraph may only be used to the extent that the payment of allother preexisting obligations in the municipality due during thecalendar year have been satisfied.

new text begin(g) For transfers of increments made in calendar year 2005and later, the reduction in increments as a result of theelimination of the general education tax levy for purposes ofparagraph (b), clause (2), for a taxes payable year equals thegeneral education tax rate for the school district underMinnesota Statutes 2000, section 273.1382, subdivision 1, fortaxes payable in 2001, multiplied by the captured tax capacityof the district for the current taxes payable year.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section applies to transfers ofincrements made after the effective date of the originalenactment of Minnesota Statutes, section 469.1763, subdivision 6.new text end

Sec. 18.

Subdivision 1.

Original net tax capacity.

(a) Upon orafter adoption of a tax increment financing plan, the auditor ofany county in which the district is situated shall, upon requestof the authority, certify the original net tax capacity of thetax increment financing district and that portion of thedistrict overlying any subdistrict as described in the taxincrement financing plan and shall certify in each yearthereafter the amount by which the original net tax capacity hasincreased or decreased as a result of a change in tax exemptstatus of property within the district and any subdistrict,reduction or enlargement of the district or changes pursuant tosubdivision 4.

(b) If the classification under section 273.13 of propertylocated in a district changes to a classification that has adifferent assessment ratio, the original net tax capacity ofthat property must be redetermined at the time when its use ischanged as if the property had originally been classified in thesame class in which it is classified after its use is changed.

(c) The amount to be added to the original net tax capacityof the district as a result of previously tax exempt realproperty within the district becoming taxable equals the net taxcapacity of the real property as most recently assessed pursuantto section 273.18 or, if that assessment was made more than oneyear prior to the date of title transfer rendering the propertytaxable, the net tax capacity assessed by the assessor at thetime of the transfer. If improvements are made to tax exemptproperty after certification of the district and before theparcel becomes taxable, the assessor shall, at the request ofthe authority, separately assess the estimated market value ofthe improvements. If the property becomes taxable, the countyauditor shall add to original net tax capacity, the net taxcapacity of the parcel, excluding the separately assessedimprovements. If substantial taxable improvements were made toa parcel after certification of the district and if the propertylater becomes tax exempt, in whole or part, as a result of theauthority acquiring the property through foreclosure or exerciseof remedies under a lease or other revenue agreement or as aresult of tax forfeiture, the amount to be added to the originalnet tax capacity of the district as a result of the propertyagain becoming taxable is the amount of the parcel's value thatwas included in original net tax capacity when the parcel wasfirst certified. The amount to be added to the original net taxcapacity of the district as a result of enlargements equals thenet tax capacity of the added real property as most recentlycertified by the commissioner of revenue as of the date ofmodification of the tax increment financing plan pursuant tosection 469.175, subdivision 4.

(e) The amount to be subtracted from the original net taxcapacity of the district as a result of previously taxable realproperty within the district becoming tax exempt, or a reductionin the geographic area of the district, shall be the amount oforiginal net tax capacity initially attributed to the propertybecoming tax exempt or being removed from the district. If thenet tax capacity of property located within the tax incrementfinancing district is reduced by reason of a court-orderedabatement, stipulation agreement, voluntary abatement made bythe assessor or auditor or by order of the commissioner ofrevenue, the reduction shall be applied to the original net taxcapacity of the district when the property upon which theabatement is made has not been improved since the date ofcertification of the district and to the captured net taxcapacity of the district in each year thereafter when theabatement relates to improvements made after the date ofcertification. The county auditor may specify reasonable formand content of the request for certification of the authorityand any modification thereof pursuant to section 469.175,subdivision 4.

(f) If a parcel of property contained a substandardbuilding that was demolished or removed and if the authorityelects to treat the parcel as occupied by a substandard buildingunder section 469.174, subdivision 10, paragraph (b), theauditor shall certify the original net tax capacity of theparcel using the greater of (1) the current net tax capacity ofthe parcel, or (2) the estimated market value of the parcel forthe year in which the building was demolished or removed, butapplying the class rates for the current year.

(g) For a redevelopment district qualifying under section469.174, subdivision 10, paragraph (a), clause (4), as aqualified disaster area, the auditor shall certify the value ofthe land as the original tax capacity for any parcel in thedistrict that contains a building that suffered substantialdamage as a result of the disaster or emergency.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for landplatted on or after August 1, 1991.new text end

Sec. 19.

Subd. 5.

Disposition of payments.

If the authority doesnot have sufficient increments or other available money to makea payment required by this section, the municipality thatapproved the district must use any available money to make thepayment including the levying of property taxes. Money receivedby the county auditor under this section must be distributed asexcess increments under section 469.176, subdivision 2,paragraph deleted text begin(a) deleted text endnew text begin(c)new text end, clause (4), except that if the county auditorreceives the payment after (1) 60 days from a municipality'sreceipt of the state auditor's notification under subdivision 1,paragraph (c), of noncompliance requiring the payment, or (2)the commencement of an action by the county attorney to compelthe payment, then no distributions may be made to themunicipality that approved the tax increment financing district.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective at the sametime as the amendments to Minnesota Statutes, section 469.176,subdivision 2, by Laws 2003, chapter 127, article 10, section 11.new text end

Sec. 20.

Subdivision 1.

Generally.

Notwithstanding any other law,no bonds, payment for which tax increment is pledged, shall beissued in connection with any project for which tax incrementfinancing has been undertaken except as authorized in thissection. The proceeds from the bonds shall be used only inaccordance with section 469.176, deleted text beginsubdivision deleted text endnew text beginsubdivisions new text end4 new text beginto4lnew text end, as if the proceeds were tax increment, except that a taxincrement financing plan need not be adopted for any project forwhich tax increment financing has been undertaken prior toAugust 1, 1979, pursuant to laws not requiring a tax incrementfinancing plan. The bonds are not included for purposes ofcomputing the net debt of any municipality.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for taxincrement financing districts for which the request forcertification was made after August 1, 1979.new text end

Sec. 21.

Subd. 3.

Duration of district.

Notwithstanding theprovisions of Minnesota Statutes, section 469.176, subdivision1b, no tax increment may be paid to the authority new text beginor the city new text endafter deleted text begin18 years from the date of receipt by the authority of thefirst increment generated from the final phase ofredevelopment. In no case may increments be paid to theauthority after deleted text end30 years from approval of the tax incrementplan. deleted text begin"Final phase of redevelopment" means that phase ofredevelopment activity which completes the rehabilitation of theLake Street site.deleted text end

new text beginEFFECTIVE DATE.new text end

Sec. 22. new text beginEXTENSION OF TIME TO EXPEND TAX INCREMENT.new text end

new text beginNotwithstanding any contrary provision of law or charter,for tax increment financing district number 3, established onDecember 19, 1994, by Brooklyn Center Resolution No. 94-273,Minnesota Statutes, section 469.1763, subdivision 3, applies tothe district by permitting a period of 13 years for commencementof activities within the district.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective upon approvalby the governing body of the city of Brooklyn Center andcompliance with Minnesota Statutes, section 645.021, subdivision3.new text end

Sec. 23. new text beginFAIRMONT; ABATEMENT AUTHORITY.new text end

new text beginThe city of Fairmont, Martin County, and Independent SchoolDistrict No. 2752, Fairmont Area Schools, may each grant anabatement under Minnesota Statutes, sections 469.1812 to469.1815, for property located in tax increment financingdistrict No. 20 in the city of Fairmont, notwithstanding any lawto the contrary. The total amount of the abatement for eachpolitical subdivision may not exceed the taxes paid by theoriginal tax capacity of the district for each year of itsexistence. Notwithstanding Minnesota Statutes, section 471.87,or any other law governing conflicts of interest, a localelected official may have a financial interest in and benefitfrom the tax abatement authorized in this section if theofficial discloses the interest and potential benefit on therecord, and abstains from voting on the matter.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the dayfollowing final enactment.new text end

new text beginSubdivision 1.new text end

new text beginDistrict extension.new text end

new text beginThe governing body ofthe city of Wabasha may elect to compute the duration of itsredevelopment tax increment financing district number 3 withoutregard to any increment received for taxes payable in 2001.new text end

new text beginSubd. 2.new text end

new text beginFive-year rule.new text end

new text beginThe requirements of MinnesotaStatutes, section 469.1763, subdivision 3, that activities mustbe undertaken within a five-year period from the date ofcertification of a tax increment financing district must beconsidered to be met for the city of Wabasha redevelopment taxincrement district number 3, if the activities are undertakenwithin ten years from the date of certification of the district.new text end

new text beginSubd. 3.new text end

new text beginNational eagle center.new text end

new text beginNotwithstanding theprovisions of Minnesota Statutes, section 469.176, subdivision4l, or any other law, the city of Wabasha may spend the proceedsof tax increment bonds issued prior to January 1, 2000, to paythe costs of acquiring and constructing a National Eagle Centerin the city. The city of Wabasha may also use tax incrementfrom its tax increment districts to pay the debt service on suchbonds, or any bonds issued to refund such bonds, subject tolegal restrictions on the pooling of tax increment. These bondsmay not be treated as preexisting obligations under MinnesotaStatutes, section 469.1794.new text end

new text beginEFFECTIVE DATE.new text end

new text beginSubdivision 1 is effective uponcompliance with Minnesota Statutes, sections 469.1782,subdivision 2, and 645.021. Subdivisions 2 and 3 are effectiveupon compliance by the governing body of the city of Wabashawith Minnesota Statutes, section 645.021.new text end

new text beginSubdivision 1.new text end

new text beginAuthorization.new text end

new text beginThe city of Richfield maycreate a tax increment financing district consisting of an arealying west of Trunk Highway 77 extending: to 16th Avenuebetween Crosstown Highway 62 and 66th Street; to 17th Avenuebetween 66th and 69th Streets; and to 18th Avenue between 69thand 72nd Streets. The city or its housing and redevelopmentauthority may be the authority for the purposes of MinnesotaStatutes, sections 469.174 to 469.179.new text end

new text beginSubd. 2.new text end

new text beginDistrict is redevelopment district.new text end

new text beginTheredevelopment tax increment district created pursuant tosubdivision 1 is deemed to be a redevelopment district and issubject to Minnesota Statutes, sections 469.174 to 469.179,except that:new text end

new text begin(1) expenditures for activities as defined in MinnesotaStatutes, section 469.1763, subdivision 1, paragraph (b),anywhere in the district are deemed to be the costs ofcorrecting conditions that allow the designation ofredevelopment districts pursuant to Minnesota Statutes, section469.174, subdivision 10; and new text end

new text begin(2) the five-year rule under Minnesota Statutes, section469.1763, subdivision 3, does not apply.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective upon localapproval by the city of Richfield in compliance with MinnesotaStatutes, section 645.021.new text end

new text beginSubdivision 1.new text end

new text beginEstablishment.new text end

new text begin(a) The city of MoundsView may establish within the corporate boundaries of the cityone or more economic development tax increment financingdistricts subject to the special rules under subdivision 2. Thedistricts must be located on property that is exempt fromtaxation for property taxes payable in 2005 and within the areadefined in paragraph (b).new text end

new text begin(b) For purposes of this section, "area" is bounded by, andincluding, on the north County Road J west of Coral Sea Streetand 82nd Lane NE east of Coral Sea Street, on the east Coral SeaStreet north of 82nd Lane NE and Interstate Highway 35W south of82nd Lane NE, on the south and southwest U.S. Highway 10, and onthe west the western boundary of Outlot A, Sysco, according tothe recorded plat thereof, and situated in Ramsey County,Minnesota.new text end

new text beginSubd. 2.new text end

new text beginSpecial rules.new text end

new text begin(a) If the city elects upon theadoption of the tax increment financing plan for the district,the rules under this section apply to the district.new text end

new text begin(b) The duration limit under Minnesota Statutes, section469.176, subdivision 1b, clause (3), is extended to 25 yearsafter receipt of the first increment.new text end

new text begin(c) The five-year rule under Minnesota Statutes, section469.1763, subdivision 3, is extended to a ten-year period.new text end

new text begin(d) The limitations on spending increment outside of thedistrict under Minnesota Statutes, section 469.1763, subdivision2, and on spending increment for developments more than 15percent of the square footage of which is used for purposesother than those listed in Minnesota Statutes, section 469.176,subdivision 4c, do not apply. Except as provided in paragraph(e), increments may only be expended within the area defined insubdivision 1, paragraph (b), and related to developmentoccurring within the area defined in subdivision 1, paragraph(b), whether or not included in a tax increment financingdistrict. Increments may only be spent on one or more of thefollowing costs, improvements, or activities:new text end

new text begin(1) acquisition and removal of existing billboards;new text end

new text begin(2) acquisition of land and easements, if the parcel isoccupied by a building constructed before 1990;new text end

new text begin(3) sanitary sewer, sewer, and water improvements;new text end

new text begin(4) road improvements;new text end

new text begin(5) parking, including structured parking;new text end

new text begin(6) administrative expenses;new text end

new text begin(7) wetland mitigation;new text end

new text begin(8) soils correction; and new text end

new text begin(9) environmental cleanup.new text end

new text begin(e) Increments may be expended on costs, improvements, oractivities outside the area defined in subdivision 1, paragraph(b), wherever located, whether or not included in a taxincrement financing district, for sanitary sewer, sewer, andwater improvements and improvements to Coral Sea Street, AirportRoad, 82nd Lane NE, County Road J, U.S. Highway 10, andInterstate Highway 35W so long as the improvements are relatedto development within the area defined in subdivision 1,paragraph (b).new text end

new text begin(f) The limitation on the ability to elect the method ofcomputation under Minnesota Statutes, section 469.177,subdivision 3, for an economic development district does notapply and the city or authority may elect the method ofcomputation under paragraph (a) or (b) of section 469.177,subdivision 3.new text end

new text beginSubd. 3.new text end

new text beginExpiration.new text end

new text beginThe authority to approve taxincrement financing plans to establish a tax increment financingdistrict under this section expires on December 31, 2015.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective upon approvalby the governing body of the city of Mounds View and uponcompliance by the city with Minnesota Statutes, sections469.1782, subdivision 2, and 645.021, subdivision 3.new text end

Sec. 27. new text beginCONVEYANCE OF STATE INTEREST IN REAL PROPERTY TOCITY OF MOUNDS VIEW.new text end

new text begin(a) Notwithstanding Minnesota Statutes, section 16B.281,16B.282, 92.45, or any other law to the contrary, thecommissioner of transportation shall convey to the city ofMounds View all right, title, and interest of the state ofMinnesota created by corrective deed dated March 16, 1989, inthe land located in Ramsey County, described as:new text end

new text beginThe South Half of the Northeast Quarter of Section 5,Township 30 North, Range 23 West, Ramsey County, Minnesota;which lies northerly and westerly of the followingdescribed line: Commencing at the center of said Section5; thence north on an azimuth of 359 degrees 23 minutes 10seconds (azimuth oriented to Minnesota State PlaneCoordinate System) along the north and south quarter lineof said Section 5 for 781.42 feet to the point of beginningof the line to be described; thence on an azimuth of 108degrees 12 minutes 41 seconds, 231.14 feet; thence on anazimuth of 98 degrees 27 minutes 03 seconds, 1486.78 feet;thence run northeasterly for 447.16 feet on a nontangentialcurve, concave to the northwest, having a radius of 720feet, a delta angle of 35 degrees 35 minutes 02 seconds anda chord azimuth of 76 degrees 55 minutes 11 seconds; thenceon an azimuth of 59 degrees 07 minutes 40 seconds, 192.89feet; thence run northerly 398.14 feet on a nontangentialcurve, concave to the northwest, having a radius of 850feet, a delta angle of 26 degrees 50 minutes 15 seconds anda chord azimuth of 29 degrees 26 minutes 05 seconds; thenceon an azimuth of 16 degrees 00 minutes 57 seconds, 303.65feet to the north line of said Tract A and thereterminating;new text end

new text begin(b) The conveyance shall be for consideration according toparagraph (d) in a form approved by the attorney general.new text end

new text begin(c) This property was acquired by the Department ofTransportation for construction of a new portion of TrunkHighway 10 west of Interstate Highway 35W. The property was notneeded for highway purposes. In 1988, the commissioner oftransportation deeded the property to the city of Mounds Viewsubject to a right of reverter.new text end

new text begin(d) If the city of Mounds View enters into a fully executeddevelopment agreement to redevelop the land described inparagraph (a) by January 1, 2007, the city shall pay thecommissioner of transportation $1,000,000 for deposit in thetrunk highway fund. If the city of Mounds View does not enterinto a fully executed development agreement to redevelop theland described in paragraph (a) by January 1, 2007, all right,title, and interest in the land shall revert back to theDepartment of Transportation unless the land is still used for apublic purpose. If the land is not subject to a fully executeddevelopment agreement and is still used for a public purpose onor after January 1, 2007, the land may continue to be used forsuch public purpose by the city of Mounds View, subject to aright of reverter if the land ceases to be used for a publicpurpose.new text end

new text beginSubdivision 1.new text end

new text beginHousing and redevelopmentsubdistricts.new text end

new text beginFor its tax increment financing districtsidentified in subdivision 2, the Housing and RedevelopmentAuthority of the city of St. Paul may establish subdistricts upto the number set forth for each tax increment financingdistrict in subdivision 2. The subdistricts shall be treated asset forth in subdivision 3, notwithstanding the provisions ofany other law to the contrary.new text end

new text beginSubd. 2.new text end

new text beginDivision into subdistricts; authority.new text end

new text beginThe taxincrement financing districts with the following Ramsey Countyidentification numbers may be divided into a number ofsubdistricts not to exceed the number set forth as follows: No.224/233, six subdistricts; No. 225, six subdistricts; No. 228,three subdistricts; and No. 234, two subdistricts.new text end

new text beginSubd. 3.new text end

new text beginDesignation of parcels.new text end

new text beginAll parcels in a taxincrement financing district listed in subdivision 2 must beassigned to a subdistrict. Each subdistrict establishedpursuant to this section shall consist of those parcels in thetax increment financing district which are designated by thecommissioners of the Housing and Redevelopment Authority of thecity of St. Paul by resolution, which parcels need not becontiguous. For purposes of determining tax increments and theparcels treated as paying tax increments, each subdistrict shallbe treated as a separate tax increment district.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day afterthe governing body of the city of St. Paul and its chiefclerical officer comply with Minnesota Statutes, section645.021, subdivisions 2 and 3.new text end

new text beginNotwithstanding Minnesota Statutes, section 469.176,subdivision 1b, or any other law to the contrary, the durationlimit that applies to the economic development tax incrementfinancing district established under Laws 1994, chapter 587,article 9, section 20, is extended to December 31, 2006. Thecity and county may prepare a plan for submission to thelegislature by February 1, 2006, providing for expenditure ofincrement resulting from an additional duration extension of thedistrict. The plan must specify the proposed durationextension, as well the planned uses of the increment.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThe repeal of Minnesota Statutes, section469.1766, is effective for districts for which the request forcertification was made after August 1, 1993. The repeal ofMinnesota Statutes, section 469.176, subdivision 1a, iseffective the day following final enactment, provided thatMinnesota Statutes, section 469.176, subdivision 1a, issatisfied for any district to which it applies, if bonds havebeen issued, property acquired, or public improvementsconstructed before the end of the three-year period, regardlessof whether the action was undertaken before or aftercertification of the district.new text end